“When you combine how the current pace of inflation is affecting everyday necessities like groceries and petrol, coupled with the impact of our post-pandemic spending on things like travel and entertainment, it’s not surprising to see these numbers,” says Anne Arbour, Director of Strategic Partnerships at the Credit Counseling Society. at MonseySense.

Pay off credit card debt

Paying off such a debt is never easy. “It took a long time to get into debt, so it can take a while to get out,” says Anne Arbor. This can take some time and depends largely on the personal circumstances of the borrower. But of course it is important to do this for your financial health, but also for your personal well-being.

To do this, however, it is imperative to be proactive and disciplined. Of course, making the minimum payments is a first step, but trying to pay more is important. However, be careful not to refund more than what your customer could afford, otherwise they could further worsen their situation.

Once the decision to repay is made, it is important to develop a strategy.

First, you need to determine the total amount owed by your customer. It’s impossible to properly plan for your client’s debt repayment if you don’t know the exact magnitude of the situation. “Knowing the numbers — how much you owe today, at what rate and to whom — is a good place to start, as is knowing your resources — how much money you have to devote to paying off debt each week or month. ‘ says Anne Arbour.

A first step might be to encourage your client to contact their creditors and ask for renegotiation of the interest rates and terms of the loan.

If your customer is in debt with a conventional credit card, he will certainly pay high interest. It would therefore be interesting to discuss the possibility of switching to a credit card with a lower interest rate with your institution.

These two methods can significantly reduce debt and save time.

Another great way to do this is to consider debt consolidation to combine multiple debts into one, thus making just one monthly payment at a lower interest rate.

These few gestures could quickly and effectively alleviate much of the problem. Next, your client needs to be disciplined and determine how much they could spend each month paying off their debt.

After these few steps, however, the mountain no longer seems as impassable as before and your customer can look forward to the future with more equanimity.